CASH EQUIVALENTS AND MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

CASH EQUIVALENTS AND MARKETABLE SECURITIES

The table below summarizes the Company’s cash equivalents and marketable securities (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
September 30, 2023
Assets
Cash equivalents:
Money market funds	$	3,417	$	—	$	—	$	3,417


Total	3,417		—		—		3,417
Marketable securities:
U.S. government-sponsored entity debt securities	28,655		—		(18)		28,637
Commercial paper securities	18,901		—		(10)		18,891
Corporate debt securities	1,379		—		—		1,379
Asset-backed securities	8,429		—		—		8,429
U.S. treasury bills	5,599		—		(18)		5,581
Certificates of deposit	12,684		1		(5)		12,680
Total	75,647		1		(51)		75,597
Total cash equivalents and marketable securities	$	79,064	$	1	$	(51)	$	79,014

December 31, 2022
Assets
Cash equivalents:
Money market funds	$	50,820	$	—	$	—	$	50,820
Total	50,820		—		—		50,820
Marketable securities:
U.S. government-sponsored entity debt securities	18,710		—		(293)		18,417
Commercial paper securities	101,336		22		(193)		101,165
Corporate debt securities	11,760		—		(90)		11,670
Asset-backed securities	24,970		2		(180)		24,792
U.S. treasury bills	7,950		—		(12)		7,938
Certificates of deposit	37,599		4		(142)		37,461
Agency bonds	5,598		—		(8)		5,590
Total	207,923		28		(918)		207,033
Total cash equivalents and marketable securities	$	258,743	$	28	$	(918)	$	257,853

The fair value of marketable securities by contractual maturity were as follows (in thousands):


	September 30, 2023		December 31, 2022
Maturing in one year or less	$	41,173	$	177,188
Maturing after one year through five years	34,424		29,845
Total	$	75,597	$	207,033

There were no realized gains and losses on the sales of investments during the three and nine months ended September 30, 2023 and 2022. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the three and nine months ended September 30, 2023.

The Company manages credit risk associated with its investment portfolio through its investment policy, which limits purchases to high-quality issuers and also limits the amount of its portfolio that can be invested in a single issuer. The Company did not record an allowance for credit losses related to its marketable securities for the three and nine months ended September 30, 2023 and 2022.

The Company had unrealized losses related to its marketable securities for the three and nine months ended September 30, 2023 and 2022. The Company had no material unrealized losses, individually and in the aggregate, for marketable securities that are in a continuous unrealized loss position for greater than 12 months as of September 30, 2023 and December 31, 2022. These unrealized losses were not attributed to credit risk and were associated with changes in market conditions. The Company periodically reviews its marketable securities for indications of credit losses. The Company considers factors such as the duration, the magnitude and the reason for the decline in value, the potential recovery period, creditworthiness of the issuers of the securities and its intent to sell. No significant facts or circumstances have arisen to indicate that there has been any significant deterioration in the creditworthiness of the issuers of the securities held by the Company. Based on the Company’s review of these securities, the Company determined that no allowance for credit losses related to its marketable securities was required at either September 30, 2023 or December 31, 2022.

The Company also considers whether it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis. Based on the scheduled maturities of its investments and projection of its cash flows in accordance with the current operating plan as of September 30, 2023, the Company determined that it was more likely than not that it will be required to sell various securities before recovery of their amortized cost basis. As a result, the Company reclassified its non-current marketable securities investments of $34.4 million as current as of September 30, 2023 and recorded an impairment charge of $0.4 million related to those securities during the three and nine ended September 30, 2023. No impairment charges were recorded during the three and nine ended September 30, 2022, as the Company concluded at that time it had the ability and intent to hold the long-term investments until maturity.